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Social capital and coping with economic shocks

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  • Carter, Michael R.
  • Maluccio, John A.

Abstract

"South African households live in an environment characterized by risks, and many face a significant probability of experiencing economic losses that threaten their daily subsistence. Using household panel data that include directly solicited information on economic shocks and employing household fixed-effects estimation, we explore how well households cope with shocks by examining the effects of shocks on child nutritional status. Unlike in the idealized village community, some households appear unable to insure against risk, particularly when others in their communities simultaneously suffer large losses. Households in communities with more social capital, however, seem better able to weather shocks." from Authors' Abstract

Suggested Citation

  • Carter, Michael R. & Maluccio, John A., 2002. "Social capital and coping with economic shocks," FCND discussion papers 142, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:142
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    References listed on IDEAS

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    1. Harold Alderman & Jere Behrman & Hans-Peter Kohler & John A. Maluccio & Susan Watkins, 2001. "Attrition in Longitudinal Household Survey Data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 5(4), pages 79-124, November.
    2. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    3. Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
    4. Deaton, Angus, 1991. "Saving and Liquidity Constraints," Econometrica, Econometric Society, vol. 59(5), pages 1221-1248, September.
    5. Jalan, Jyotsna & Ravallion, Martin, 1999. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China," Journal of Development Economics, Elsevier, vol. 58(1), pages 61-81, February.
    6. Harold Alderman & Jere R. Behrman & Victor Lavy & Rekha Menon, 2001. "Child Health and School Enrollment: A Longitudinal Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 185-205.
    7. Julian May & Michael Carter & Lawrence Haddad & John Maluccio, 2000. "KwaZulu-Natal Income Dynamics Study (KIDS) 1993-98: A longitudinal household database for South African policy analysis," Development Southern Africa, Taylor & Francis Journals, vol. 17(4), pages 567-581.
    8. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    9. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-114, Summer.
    10. John Maluccio & Lawrence Haddad & Julian May, 2000. "Social capital and household welfare in South Africa, 1993-98," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 54-81.
    11. John A. Maluccio, 2004. "Using Quality of Interview Information to Assess Nonrandom Attrition Bias in Developing-Country Panel Data," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 91-109, February.
    12. Hanan G. Jacoby & Emmanuel Skoufias, 1998. "Testing Theories of Consumption Behavior Using Information on Aggregate Shocks: Income Seasonality and Rainfall in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 1-14.
    13. Carter, Michael R, 1997. "Environment, Technology, and the Social Articulation of Risk in West African Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 45(3), pages 557-590, April.
    14. Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Kathy Baylis & Yazhen Gong & Shun Wang, 2013. "Bridging vs. Bonding Social Capital and the Management of Common Pool Resources," NBER Working Papers 19195, National Bureau of Economic Research, Inc.

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